XRP Price Slumps by 5% on Fed Hawkish Comment Reactions
XRP price declined by 4.68% to $1.38, underperforming the broader market decline, which was primarily driven by a hawkish shift in Federal Reserve rhetoric that pressured risk assets.
Traders shifted on macro risk-off sentiment triggered by Fed Chair Kevin Warsh’s hawkish inflation comments at Jackson Hole.
Federal Reserve Chair Kevin Warsh stated inflation remains “above our 2 percent target” and opened the door to a potential rate hike as soon as September.
This hawkish pivot reduced appetite for speculative assets such as cryptocurrencies, causing a market-wide drop, with Bitcoin down 3.04%. XRP moved as a high-beta asset in a risk-off environment, magnifying the broader market’s decline.
XRP’s 14-day RSI at 73.76 signals overbought conditions, inviting profit-taking. Concurrently, the Altcoin Season Index fell 13.51% in 24h, indicating capital is rotating away from altcoins and into safer assets like Bitcoin.
The recent 30-day rally of nearly 30% made XRP vulnerable to a pullback, amplified by shifting market rotations. A weekly close below the 50-week average near $1.54 could signal further downside, according to analysts.
The immediate path hinges on the $1.34 support. Holding above could lead to range-bound trading between $1.34 and $1.42.
A break below $1.34 risks a test of the next key level at $1.25. The primary near-term trigger is the Federal Reserve’s September meeting. The outlook is cautiously neutral, contingent on macro developments rather than coin-specific catalysts.
The market anticipates sustained ETF inflows to reverse the downtrend; XRP ETFs attracted $18.47 million on August 28, suggesting underlying demand.
XRP’s drop is a combination of macro headwinds and technical cooling after a strong rally. While positive ecosystem news, such as Evernorth’s imminent Nasdaq listing, provided a structural tailwind, it was overshadowed by immediate rate fears. SK Hynix Tokenised bStocks Rises on Risk-on Sentiment
